Transfer Payments To The Role Of Research In Urban And Rural Public Goods Supply Equalization

Rural-urban gap has been a focus in China for many years. Meliorating rural-urban gap needs our government to create open and fair market environment. However, that resources are allocated only by market will result in more obvious economy concentration and wider rural-urban gap. The result is that individual income increases while life quality is down. Moreover, the enlargement of rural-urban gap will make domestic demand shrink and affect economic growth finally. Therefore, it is government not market that transfers resources to rural and undeveloped regions. One of the methods is to construct rural-urban integrating public goods provision system, to narrow the rural-urban gap by increasing rural public goods, and to take good care of public resources, with equalization be the aim. It is only in that way that we can reduce peasants' burden in system and rural-urban areas develop harmoniously.The thesis adopts logic deduction to describe the relation between transfer payment and the equalization of public goods supply completely, and that transfer payment is an effective way for government to perform the equalization. Then the thesis discusses the function mechanism of transfer payment to perform equalization, and points out that both the system design of transfer payment and its function to promote balanced growth of area economy will contribute to equalization.Then the author elaborates the function of transfer payment in equalization of rural-urban public goods in next four parts.In the first part, on the basis of learning from predecessors' opinions, the author limits the concept of equalization, and describes differences of governmental resources' distribution between rural and urban areas in rural-urban infrastructure, compulsory education, social security and public health. Then the author briefly analyzes the reasons and influence of the differences, which prepares upholstery for analyzing transfer payment and solving the problem in next parts. In the second part, the author simply introduced the theory basis of transfer payment, and confirm transfer payment to be an effective way to change the differences in rural and urban areas, by describing the intrinsic mechanism design of transfer payment, multiplier effect of it and analysis on the effect of three kinds transfer payment. Finally, the author briefly analyzes the transfer payment's disadvantages in equalization, which has made a full preparation for countermeasure suggestions in the fourth part.In the third part, through international comparison and analysis on the balancing public goods provision, namely fiscal investment in compulsory education in the US, Japan 's rural education transfer payment pattern and France's rural compulsory education provision system, the author obtains the enlightenment to reform China's transfer payment system.In the fourth part, in view of the transfer payment's disadvantages in equalization, on the basis of learning from the foreign experience, the author puts forward several suggestions on improving transfer payment system in China, with the aim to realize the equalization of rural-urban public goods through perfect transfer payment system.